The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for December 7, 2012
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
New corporate brand
earnings news
DS Pharma
other news
Anacor Pharmaceuticals
Aratana Therapeutics
Lucky Litter
Pets Best Insurance
Radio Systems
Brakke Consulting has a new corporate look to match its expansion into new markets in the animal health industry. In addition to the new look, Brakke has increased and improved its communication tools so that the company can continue to provide quality consulting and assist clients in understanding the wide range of services available to them.
> DS Pharma Animal Health Company reported results for the first half of 2012 ended September 30, 2012. The company reported revenue of Y5,700 million ($71 million) , an increase of 2% compared to the same period of 2011. Although net sales of companion animal products increased 2%, farm animal and aquaculture products sales were static compared to the first half of 2011. (company communication)
> Pfizer Animal Health and its subsidiary Synbiotics announced that they now offer equine frozen semen storage and shipping. The Synbiotics team has been preserving and shipping canine assets from its AKC-approved facility for more than 20 years. (
> Merial introduced Longrange (eprinomectin), the first extended-release injectable cattle dewormer that provides cattle producers season-long persistent parasite control for 100 to 150 days in a single dose. The season-long persistent parasite control of Longrange is possible because of unique Theraphase Technology, which releases the active ingredient in Longrange for at least 100 days. (company press release)
> Anacor Pharmaceuticals announced that it has achieved its second development candidate in its animal health collaboration with Eli Lilly and Company (Elanco). Anacor’s research collaboration with Lilly is focused on the use of Anacor’s boron chemistry to discover products for a variety of animal health applications. (
> Pacira Pharmaceuticals Inc. announced that Aratana Therapeutics will develop a version of its surgical pain drug Exparel (bupivacaine liposome) for use in veterinary procedures. Pacira will receive $1 million upfront from Aratana, and it could get up to $42.5 million in milestone payments. The company will also get royalty payments of more than 10% on net sales. (
> Calpis announced it will invest Y1.5 billion ($18.75 million) in building a new manufacturing plant and research laboratory for Calsporin, its probiotic feed additive, in Georgia. The plant and laboratory will manufacture 720 tons of Calsporin feed additive each year. Calsporin is manufactured through the fermentation of Bacillus subtilis C-3102. (Animal Pharm)
> Pets Best Insurance announced the launch of a Cancer Only insurance plan. The low-cost Cancer Only plan offers coverage for the diagnosis and treatment of malignant cancers, including chemotherapy, MRIs, examinations, blood work, surgeries, medications and other cancer-related expenses. (company press release)
> SmartPak announced the launch of ColiCare, a new equine wellness program that provides horse owners with up to $7,500 of reimbursement should their horse require colic surgery. Horses who receive SmartPak’s gastrointestinal health formula, SmartDigest Ultra, in the SmartPak Supplement Feeding System and are between the age of 5 months and 25 years are eligible to be enrolled in this program. (company press release)
> Radio Systems Corporation announced it has acquired Lucky Litter LLC, makers of ScoopFree innovative litter boxes and cartridges and FroliCat pet toy. Financial terms were not disclosed. (Business Wire)
> UK – BOVINE TUBERCULOSIS  Data published by the UK’s Department for Environment, Food and Rural Affairs (Defra) show that the number of bovine tuberculosis-infected cattle slaughtered in the UK has grown for the third consecutive year. The news came as the Wellcome Trust institute published the first direct evidence linking TB infection in cattle with local badger populations. (Animal Pharm)
> UK – CANCER  The UK Animal Health Trust (AHT) announced the opening of a cancer treatment centre for dogs, cats and horses. The AHT Kennel Club Cancer Centre in Newmarket houses a linear accelerator and brachytherapy machine used in radiotherapy treatment along with a 16-slice CT scanner to aid radiotherapy planning. AHT believes this is the first facility of its kind in Europe, purpose-built to treat horses, dogs and cats with cancer. (Animal Pharm)
> EU – ANIMAL DISEASE PREVENTION  The EU has earmarked more than EUR 199 million ($259 million) to support 137 programs to eradicate, control and monitor animal diseases and zoonoses, aiming to further strengthen the protection of human and animal health in 2013.The elected programs receiving the greatest allocation were Bovine Tuberculosis (about EUR 71 million) and Transmissible Spongiform Encephalopathies (about EUR 54 million). ( 
As we close out 2012 and look at results and trends for the year, it’s becoming more obvious that some pet owners are migrating toward the OTC side of the business to purchase certain products. It’s not a revolution; it’s more of an evolution, but if this continues it will erode the market shares of the veterinary channel. Some recent published reports and studies indicate that pet owners prefer convenience and price when making buying decisions in a number of product categories. The multiple sources available today to pet owners to purchase products for their pets continues to grow and we believe will continue for the next few years. It takes innovation and superior service to reverse purchasing behavior habits.

We hope you noted earlier in the newsletter that Brakke Consulting is sporting some new graphics and improved communications vehicles to interface with our current and future clients. We hope that you find these changes beneficial as you explore the consulting services we provide to the industry.  You can visit our website to see some of these changes in action.
Ron Brakke
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Brakke Consulting, Inc.
12005 Ford Rd., Suite 530
Dallas, TX  75234    USA

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